Pacasmayo net profits up

Published:
22 November 2005

The net profits of Peruvian cement company Pacasmayo rose 12.8 per cent year-on-year in 3Q05 to US$6.11m because of higher sales volumes and cuts in costs, according to a report from Banco de Créito del PerúBCP. Pacasmayo’s net sales climbed to US$25.3m in the July-September period this year, which was an increase of 9.1 per cent compared to the same three months of 2004. This was the result of higher clinker and cement production, and an increase in sales volumes.

The firm’s sales costs as a proportion of total sales rose from 33.8 per cent in 3Q04 to 43.7 per cent in 3Q05 because it decided to start including depreciation in production costs rather than administrative expenses. In the same period, operating costs dipped 7.5 per cent. During the third quarter, gross profits reached US$14.2m, down 7.3 per cent compared to July-September 2004. Operating profits meanwhile slipped 7.1 per cent year-on-year to US$9.27m.